The existence of which one of the following is not a reason for the fact that GDP gives an incorrect estimate of the value of total output in the economy?

Question

Quizplus · Accepted Answer

Gross Domestic Product (GDP) measures the market value of all final goods and services produced within a country in a given period. It does not account for non-market transactions or the distribution of income among residents of a country. Leisure time, political freedom, social justice, and health and life expectancy are factors that can significantly affect the well-being of a population but are not directly measured by GDP. Taxes, on the other hand, are a part of the fiscal policy and do not inherently cause GDP to give an incorrect estimate of the value of total output; they are a transfer within the economy rather than an omission in the measurement of economic activity.

The Existence of Which One of the Following Is Not